ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 5 Lakh crore, the AMC is among the most trusted names in the mutual fund space.
The AMF offers products across asset classes. Let us talk about the flagship product – ICICI Prudential Bluechip Fund.
ICICI Prudential Bluechip Fund
Investment Objective
To generate long-term capital appreciation and income distribution to investors from a portfolio predominantly invested in equity and equity-related securities of large-cap companies.
Investment Process
The scheme aims to maintain a minimum exposure of 80% towards equity and equity-related instruments of large-cap companies, selected based on a bottom-up approach focusing on long-term wealth creation.
Portfolio Composition
As per its investment objective, the equity exposure is majorly in large-cap stocks at 91.35%. Significant sectoral exposure is to banks that account for roughly one-fourth of the portfolio. The top 5 sectors hold nearly 58% of the portfolio.
Source: ICICI Pru AMC
Top 5 Holdings for ICICI Prudential Bluechip Fund
| Name | Sector | Weightage % |
| ICICI Bank Ltd | Financial Services | 9.34 |
| Reliance Industries | Conglomerate | 8.02 |
| HDFC Bank Ltd | Financial Services | 7.08 |
| Infosys Ltd. | Information Technology | 6.65 |
| Larsen & Tubro Ltd. | Construction | 6.55 |
Source: ICICI Pru AMC
Performance over 16 years
If you had invested 10,000 at the fund’s inception, it would now be valued at Rs 66,660.
Note: Fund performance since launch; Inception Date – 23rd May 2008.
Source: icicipruamc.com
The fund has given consistent returns and has outperformed the benchmark over 15 years by generating a CAGR (Compounded Annual Growth Rate) of 13.77%.
Fund Manager
The fund is ably managed by
- Anish Tawakley – Managing this fund since Sep. 2018 & has overall 26 years of experience.
- Vaibhav Dusad – Managing this fund since Jan. 2021 & has an overall nine years of experience
Who should invest?
The scheme is suitable for investors who wish to invest in large-cap stocks
- That is relatively less volatile than other stocks,
- Have a well-proven track record and solid fundamentals, and can deliver consistent long-term returns.
Why invest?
- The scheme provides diversification to investors who wish to park their funds across various themes and sectors.
- The benchmark sector-neutral approach gives investors confidence that the funds parked are invested in line with the benchmark.
Horizon
- One should look at investing for a minimum of five years or more.
- Investment through Systematic Investment Plan (SIP) may help tackle broader equity market volatility.
Conclusion
The fund has consistently outperformed its benchmark. Also, since it is a large-cap fund, it has the potential for capital appreciation with less volatility than small-cap and mid-cap funds.
Hence, investors seeking to invest for a long-term time horizon intend to generate good returns with relatively lesser risk.
Disclaimer:
This is not recommendation advice. All information in this blog is for educational purposes only.
